Navigating the world of cryptocurrency exchanges can be daunting for newcomers. This guide provides a clear, step-by-step overview of the general process for getting started with a major digital asset trading platform, focusing on account setup and accessibility.
For those new to trading, understanding the basic mechanics of certain financial instruments, like options, is crucial. An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a certain date. If exercising the right is favorable to the buyer at expiration, they will execute it for a potential gain. If it is not favorable, the buyer can simply let the option expire, with the seller having no further obligation.
Major platforms offer these instruments on popular assets like Bitcoin (BTC) and Ethereum (ETH), allowing users to trade both call (betting on a price increase) and put (betting on a price decrease) options.
Getting Started with Your Account
The initial step for any new user is to successfully create an account on their chosen platform. The registration process is typically straightforward and can be completed on the official website. It generally involves providing an email address or mobile number and creating a secure password. Following registration, you may need to complete identity verification procedures, known as KYC (Know Your Customer), to fully unlock all features and higher withdrawal limits. This is a standard security practice across the industry.
Regarding application access, availability can depend on your region due to local regulations. Users should always check the official website for the most direct and secure download links for their device's operating system (iOS or Android). It is essential to only download apps from official sources like the Apple App Store, Google Play Store, or the platform's official website to avoid security risks.
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Understanding the Basics of Option Trading
Option trading on a digital asset platform generally involves three core stages: transferring funds, configuring account settings, and finally, executing the option trades themselves.
1. Transferring Funds
Before you can begin trading options, you must first ensure your trading account is funded. This involves transferring your chosen cryptocurrency (e.g., BTC or ETH) from your main funding wallet to your dedicated trading account. You can usually find this function in the "Assets" or "Wallet" section of the platform.
- Navigate to the trading interface.
- Locate and click on the "Transfer" or "Assets" button.
- Select the cryptocurrency you wish to transfer (e.g., BTC).
- Choose "From: Funding Account" and "To: Trading Account."
- Enter the amount you want to transfer and confirm the transaction.
2. Configuring Account Settings
Before placing trades, it's wise to configure your account settings to match your trading preferences. Click the settings icon (often found in the top right corner of the trading view) to adjust options such as:
- Account Mode: Choose between different margin modes.
- Trading Unit: Set your preferred denomination for viewing contracts.
3. Trading Call Options
A call option is a bet that the market price of an asset will rise before the contract expires.
Placing a Trade (Buying to Open):
Platforms often offer different trading views, from advanced "T型报价模式" (T-shaped quotation) for experts to simplified modes for beginners.
- Select "Options" from the list of available products.
- Choose the underlying asset (e.g., BTC).
- Filter for "Call Options."
- Select your desired expiration date.
- Choose a specific strike price from the list.
- Set your order type (e.g., Limit Order), enter your price and amount, and click "Buy."
Closing a Position (Selling to Close):
You can manage your open positions from the "Positions" tab.
- Navigate to your list of open positions.
- Select the specific call option position you wish to close.
- Enter the price and quantity for your closing order.
- Click "Sell" or "Close Position."
4. Trading Put Options
A put option is a bet that the market price of an asset will fall before the contract expires.
Placing a Trade (Selling to Open):
The process for entering a put option trade is similar to a call option.
- Select "Options" and choose your asset (e.g., BTC).
- Filter for "Put Options."
- Select your expiration date and strike price.
- Set your order parameters and click "Sell" to open the position.
Closing a Position (Buying to Close):
To exit a put option position you have sold, you would buy it back.
- Go to your "Positions" tab.
- Select the put option position to close.
- Enter your order details and click "Buy" to close the position.
Managing Your Trades
- Order History: You can review your active orders and past order history under tabs like "Current Orders" or "Order History." This allows you to cancel orders that have not yet been filled.
- Viewing Positions: Your open positions dashboard will show key information such as entry price, position size, initial margin, and unrealized profit and loss (P&L).
Important Note on Settlement: Many crypto options are European-style, meaning they can only be exercised at expiration. However, traders can close their positions at any time before the expiration date to realize gains or losses. At expiry, profitable options are typically automatically exercised, while out-of-the-money options expire worthless.
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Frequently Asked Questions
What is the difference between a call and a put option?
A call option gives you the right to buy an asset at a set price, profiting if the market price rises above that level. A put option gives you the right to sell an asset at a set price, profiting if the market price falls below that level.
Where can I safely download the trading app?
The only safe sources are the official app stores for your device (Apple App Store, Google Play Store) or the official download link provided on the platform's website. Avoid downloading APK files from third-party sites to protect your assets and data.
Why do I need to complete identity verification (KYC)?
KYC is a mandatory security and regulatory procedure. It helps protect the platform and its users from fraud, money laundering, and other illegal activities. Completing it usually grants full access to services and higher withdrawal limits.
What does 'expiration date' mean for an option?
The expiration date is the last day on which the option contract is valid. After this date, the contract settles. For European-style options, exercise only happens at expiration.
Can I close my option position before it expires?
Yes, a key feature of exchange-traded options is that you can sell a bought option or buy back a sold option at any time before expiration to exit your position and lock in your current profit or loss.
What happens if my option expires 'out-of-the-money'?
If an option expires out-of-the-money (meaning it would be unprofitable to exercise), the contract simply expires worthless. The buyer loses the premium they paid, and the seller keeps it as profit.